Ovintiv (OVV) AI Stock Analysis

• Market Cap: $9.28B
• Dividend Yield: 3.22%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.93
• Revenue Growth: -8.07%
• EPS Growth: -87.88%
• Country: US
• Employees: 1,623
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.03
• Shares Outstanding: 253,258,560
• 10 Day Avg. Volume: 3,608,648
• 30 Day Avg. Volume: 3,190,160
• PEG Ratio: -0.20
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 7.56
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 3.52
• Enterprise Value/Ebitda: 5.58
• 1Y Price Target: $50.07
• Price Target Upside: 28.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 4.3
• Revenue Forecast (FY): $8.85B

• Rating: 61 Neutral
• Price Target: $40.00 ▲(2.93% Upside)

Ovintiv's overall stock score reflects a balance of strengths and challenges. The strategic growth initiatives and strong financial performance highlighted in the earnings call are significant positives. However, the mixed financial performance, technical indicators, and high valuation present challenges that temper the overall outlook.

Positive Factors

Strategic Acquisition

The acquisition of NuVista Energy is expected to enhance Ovintiv's financial metrics, including a 10% increase in free cash flow per share, while remaining leverage-neutral. This strategic move strengthens Ovintiv's position in key resource plays, supporting long-term growth and operational efficiency.

Debt Reduction Strategy

The planned divestiture of Anadarko assets is part of a broader strategy to reduce debt, enhancing financial flexibility and shareholder returns. By targeting a net debt reduction, Ovintiv positions itself for improved balance sheet health and sustainable long-term growth.

Operational Efficiency

Ovintiv's ability to increase production while reducing capital spending demonstrates strong operational efficiency. This focus on cost management supports profitability and positions the company to better navigate market fluctuations, ensuring durable financial performance.

Negative Factors

Declining Revenue Growth

The decline in revenue growth suggests potential market challenges and competitive pressures. This trend could impact Ovintiv's ability to sustain its market position and profitability, necessitating strategic adjustments to drive future growth.

Reduced Free Cash Flow

The reduction in free cash flow growth indicates potential constraints in cash generation, which could limit Ovintiv's ability to invest in growth opportunities and return capital to shareholders. Addressing this issue is crucial for maintaining financial health.

Paused Share Buyback Program

The pause in the share buyback program may impact immediate shareholder returns and reflects the company's need to prioritize strategic acquisitions over direct capital returns. This decision could affect investor sentiment and requires careful communication.

Ovintiv Business Overview & Revenue Model

Company Description

Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It operates through USA Operations, Canadian Operations, and Market Optimization segments. The company's principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets comprise Bakken in North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia, and Wheatland in southern Alberta. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

How the Company Makes Money

Ovintiv generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company employs a business model that capitalizes on the extraction and production of these hydrocarbons, selling them at market prices to refiners, utilities, and industrial customers. Key revenue streams include upstream activities in various resource-rich areas such as the Permian Basin, Montney, and Bakken formations, where Ovintiv has established significant production capabilities. Additionally, the company benefits from hedging strategies that help mitigate price volatility and secure predictable cash flows. Strategic partnerships and joint ventures with other energy firms also enhance Ovintiv's operational efficiency and access to capital, contributing to its overall earnings.

Ovintiv Financial Statement Overview

Summary

Ovintiv's financial statements show strong gross profit margins and a stable balance sheet with moderate leverage. However, challenges include declining revenue growth and profitability metrics, along with reduced free cash flow generation, indicating a need for improved operational efficiency and cash flow generation.

Income Statement

Ovintiv's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -2.8%, reflecting challenges in the market. However, the company maintains a solid gross profit margin of 62.9% and a positive net profit margin of 2.6%, indicating operational efficiency despite revenue pressures. The EBIT and EBITDA margins have decreased compared to previous years, suggesting potential cost management issues.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. The return on equity (ROE) is relatively low at 2.3% in the TTM period, showing reduced profitability on equity. The equity ratio stands at 14.0%, suggesting a solid equity base relative to total assets. Overall, the balance sheet shows stability but highlights a need for improved profitability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth rate by -12.6% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is healthy at 1.41, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio is lower at 0.23, reflecting potential constraints in free cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.90B	9.15B	10.88B	12.46B	8.66B	6.09B
Gross Profit	4.78B	4.98B	5.90B	6.88B	4.22B	2.71B
EBITDA	3.02B	4.05B	4.69B	4.98B	2.77B	-3.52B
Net Income	236.00M	1.13B	2.08B	3.64B	1.42B	-6.10B
Balance Sheet
Total Assets	73.04B	19.25B	19.99B	15.06B	14.05B	14.47B
Cash, Cash Equivalents and Short-Term Investments	25.00M	42.00M	3.00M	5.00M	195.00M	10.00M
Total Debt	6.43B	6.29B	6.68B	4.49B	5.78B	8.01B
Total Liabilities	62.81B	8.92B	9.62B	7.37B	8.98B	10.63B
Stockholders Equity	10.23B	10.33B	10.37B	7.69B	5.07B	3.84B
Cash Flow
Free Cash Flow	1.49B	1.42B	1.42B	2.04B	1.61B	159.00M
Operating Cash Flow	3.72B	3.72B	4.17B	3.87B	3.13B	1.90B
Investing Cash Flow	-2.45B	-2.46B	-5.52B	-1.79B	-525.00M	-1.86B
Financing Cash Flow	-1.31B	-1.23B	1.36B	-2.27B	-2.42B	-206.00M

Ovintiv Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVV, the sentiment is Neutral. The current price of 38.86 is above the 20-day moving average (MA) of 37.11, below the 50-day MA of 39.52, and below the 200-day MA of 39.03, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OVV.

Ovintiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PR	77 Outperform	$10.06B	11.10	8.58%	4.95%	7.55%	-34.40%
MTDR	76 Outperform	$4.62B	5.95	15.06%	3.02%	14.77%	-17.38%
APA	73 Outperform	$7.75B	5.22	27.24%	4.20%	4.88%	-41.34%
RRC	71 Outperform	$8.78B	15.57	14.18%	0.93%	23.88%	20.55%
AR	67 Neutral	$10.13B	18.69	7.65%	―	17.05%	1028.81%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OVV	61 Neutral	$9.28B	40.15	2.26%	3.22%	-8.07%	-87.88%

Ovintiv Corporate Events

Ovintiv’s NuVista Acquisition: Navigating Integration Challenges and Financial Risks

Ovintiv Inc. faces significant business risks following its acquisition of NuVista, as the success of this merger hinges on the effective integration of both companies’ operations. The anticipated benefits and cost savings may not materialize as planned, potentially due to challenges in combining systems, management controls, and business relationships. Furthermore, unforeseen liabilities and expenses could emerge, complicating the realization of operating synergies. These factors could adversely impact Ovintiv’s financial results if not managed efficiently and promptly.

Ovintiv Inc. Reports Strong Q3 2025 Results

Ovintiv Inc. is a leading energy company engaged in the exploration, development, and production of oil and natural gas, with operations primarily in North America. The company is known for its diversified portfolio and commitment to operational efficiency.

Ovintiv’s Earnings Call: Strategic Growth Amid Uncertainties

Ovintiv Inc.’s recent earnings call painted a picture of strategic growth and robust financial performance, despite some uncertainties. The company’s acquisition of NuVista Energy and strong cost management were highlighted as key drivers of its positive outlook. However, the pause in the share buyback program and the planned sale of Anadarko assets introduced some concerns regarding market conditions and immediate shareholder returns. Overall, the sentiment was optimistic, with growth and efficiency improvements taking center stage.

Ovintiv to Acquire NuVista Energy for $2.7 Billion

On November 4, 2025, Ovintiv Inc. announced a definitive agreement to acquire NuVista Energy Ltd. in a stock-and-cash transaction valued at approximately $2.7 billion. This acquisition is expected to significantly enhance Ovintiv’s position in the Alberta Montney region by adding approximately 140,000 net acres and 100,000 barrels of oil equivalent per day to its portfolio. The transaction is anticipated to be immediately accretive across key financial metrics and generate annual synergies of about $100 million. Additionally, Ovintiv plans to divest its Anadarko assets by the end of 2026 to accelerate debt reduction, aiming to achieve a Non-GAAP Net Debt target of $4 billion, which will enable increased share buybacks.

The most recent analyst rating on (OVV) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Ovintiv stock, see the OVV Stock Forecast page.

Ovintiv Reports Strong Q3 2025 Financial Results

On November 4, 2025, Ovintiv announced its third quarter financial and operating results, highlighting a cash flow of $895 million and a reduction in net debt by $126 million. The company increased its full-year production guidance while maintaining capital investment, reflecting strong operational performance. Ovintiv also declared a quarterly dividend of $0.30 per share payable on December 31, 2025, and received approval for its NCIB program, allowing the purchase of up to 22.3 million shares. The company’s strategic focus on operational excellence and capital efficiency is expected to enhance its market position and shareholder returns.

The most recent analyst rating on (OVV) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Ovintiv stock, see the OVV Stock Forecast page.

Ovintiv Renews Share Buyback Program for 2025

On September 29, 2025, Ovintiv Inc. announced the renewal of its normal course issuer bid, allowing the company to repurchase up to 22,287,709 common shares over a 12-month period starting October 3, 2025. This renewal, approved by the Toronto Stock Exchange, aligns with Ovintiv’s strategy to return at least 50% of its post-base dividend free cash flow to shareholders. The renewed program includes an automatic share purchase plan to facilitate acquisitions during blackout periods, and the company has also renewed its exemption order to repurchase shares beyond Canadian regulatory limits on U.S. trading systems.

The most recent analyst rating on (OVV) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Ovintiv stock, see the OVV Stock Forecast page.